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year, however, stands on its own and must be separately
considered. United States v. Skelly Oil Co., 394 U.S. 678, 684
(1969); Pekar v. Commissioner, 113 T.C. 158, 166 (1999).
At the previous trial, Mr. Rinehart appeared pro se, his
trial lasted approximately 3 hours, and the only witness for the
taxpayer was Mr. Rinehart. In the instant case, Mr. Rinehart was
represented by counsel, evidence was presented over 3 full days,
and additional witnesses corroborated Mr. Rinehart’s testimony
regarding the horse breeding activity. In Rinehart I, Mr.
Rinehart stipulated that he was not involved with any other
activity similar to the horse breeding activity, that he did not
possess adequate records of income and losses for the horse
breeding activity, that he did not keep adequate records on each
of his horses, and that he received personal pleasure and
enjoyment from the horse breeding activity. The evidence in this
case clearly established that these stipulations do not apply to
the years here in issue. Accordingly, we have reached our
decision herein in light of the voluminous new evidence presented
to the Court.
The evidence established that Mr. Rinehart maintained
adequate records, operated the horse breeding activity in a
businesslike manner, had extensive expertise about horse
breeding, expended a significant amount of time on the horse
breeding activity, had a reasonable expectation that the assets
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